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- Chapdelaine & Co (based on Bloomberg)
Pair's Outlook
EUR/USD prolonged a sell-off below the major upward-sloping 2015 trend-line. On top of that, the monthly S1 at 1.1022 was penetrated as well, but the cross managed to remain above the important psychological level of 1.10. The monthly S2, which is strengthened by the weekly S1, became exposed around the 1.0870 mark. We would allow for this level to limit first attempts to slump even lower. Rallies are likely to be capped by 200-day SMA/weekly PP at 1.1119. The market seems to be refocusing considerably to the downside at the moment.
Traders' Sentiment
The share of SWFX bullish open positions rose from 50% to 51% over the weekend. Meanwhile, pending commands in 100-pip range from the spot are distributed equally between the longs and shorts.
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